Velocity Financial (VEL) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Velocity Financial

NYSE•Financial Services•Mortgage Finance

$18.43+0.03(<0.01%)Market closed

Market Cap

$640.98M

P/E

6.0x

P/S

3.4x

P/B

0.9x

Velocity Financial, Inc. operates as a real estate finance company in the United States. The company originates, securitizes, and manages a portfolio of loans, which are secured by real estate, including investor loans unit residential rental properties; residential rental properties office; and loans for multi-family, mixed use, and commercial properties. The company also provides warehouse and other properties. It offers its products through a network of independent mortgage brokers and direct borrower relationships. The company was founded in 2004 and is headquartered in Westlake Village, California

How this company scores

WeakMetricSide Score: 56/100

Grade capped at D — Interest coverage below 1× (0.3x) — earnings cannot cover interest. Strongest: Profitability (23/25); weakest: Balance Sheet & Red Flags (3/25).

Profitability23/25

Growth22/25

Balance Sheet & Red Flags3/25

Cash & Earnings Quality8/25

Strengths

Growing revenueStrong marginsRising earningsProfit converts from growth

Grade capped at D

Interest coverage below 1× (0.3x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 6.0x5y range 6.0x – 11.9x

Currently below its 20-quarter median.

P/S · 3.4x5y range 3.0x – 5.3x

Currently near its 20-quarter median.

P/B · 0.9x5y range 0.7x – 1.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.2x) — earnings may be inflated by non-cash items or aggressive accounting.

Leverage Risk

Red Flag

D/E ratio is 9.3 — heavily leveraged and vulnerable to rising rates or cash flow dips.

Price & Volume

Market Cap $640.98M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $188.52M
Q. Revenue: $47.91M
TTM EBITDA: $152.30M
TTM Op. Income: $151.54M
Q. Op. Income: $35.23M
TTM Net Income: $107.70M
Q. Net Income: $25.16M
EPS: $0.64
Shares Out.: $38.73M

$188.52M in TTM revenue grew 21.2% YoY, reaching $47.91M last quarter. TTM EBITDA of $152.30M and TTM operating income of $151.54M show growth is flowing through to the bottom line. TTM net income of $107.70M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 73.8%
Op. Margin: 73.5%
Net Margin: 52.5%

Op. margin of 73.5% is down 0.2% YoY — costs are rising relative to revenue. Net margin at 52.5% Over the past year, operating margin is down 0% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 6.0x
P/S Ratio: 3.4x
P/B Ratio: 0.9x

At 6.0x P/E, the stock trades below typical market levels. P/S of 3.4x and P/B of 0.9x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has fallen for 7 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $7.96B
Cash: $76.11M
Long-Term Debt: $6.74B
Book Value: $721.54M
D/E Ratio: 9.3
Debt/EBITDA: 190.6

With $7.96B in assets and $6.74B in long-term debt, D/E is 9.3and book value is $721.54M — elevated leverage, meaning significant financial risk in a downturn. Over the past year, debt/equity is up 4% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $3.74M
TTM Free Cash Flow: $22.53M
FCF Margin: 11.9%
FCF / Net Income: 0.2

TTM FCF of $22.53M on $3.74M in operating cash flow. The FCF / Net Income ratio of 0.2x means cash covers only part of net income — earnings quality needs attention. Over the past year, free cash flow is down 15% — a weakening trend.